UniCredit Bank to pay fine for a closed account of mining company

The bank is forced to pay compensation of 131 million EUR ($143,7 million)

28.03.2022 - 15:25

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What’s new? Italy’s second-largest banking group UniCredit has been forced to pay a 131 million EUR ($143,7 million at the exchange rate on March 28) fine. The bank’s branch in Bosnia and Herzegovina has received a lawsuit, filed by a subsidiary of the Italian mining company Bitminer Factory. UniCredit closed the accounts and illegally blocked the company’s funds, La Repubblica newspaper reports.

Information on the La Repubblica website

How did events develop? Bitminer Factory d.o.o. Gradiska was launched in Bosnia and Herzegovina and the accounts were opened in the local branch of UniCredit Bank Banja Luka. After accepting the mining company’s requests for cryptocurrency conversion, the bank began rejecting them on the grounds of “not being able to do business with digital currency suppliers and exchange platforms.” The court ruled that the bank had failed to prove that it had any basis for banning it from serving customers holding cryptocurrencies.

The suit accused the bank of improperly closing accounts belonging to the company. The court accepted the company’s arguments that it had suffered losses and awarded it 131 million EUR in compensation. The bank said it has filed an appeal against the court’s decision.

What is known about Bitminer Factory? It is the largest mining company in Italy, which started operating in 2017. It uses energy from environmentally friendly sources.

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